Enterprise: The skill involved in
wanting to start and run a
business.
Difference between a good and a service:
A good is a physical product such as a burger or car.
A service is a non-physical item like a
haircut or legal advice from a solicitor.
Key characteristics of enterprise:
Take risks: setting up a new business is risky. Even if the
entrepreneur has carefully researched the market there is
always a chance that customers may reject the product.
Show initative: and make things happen. Successful
entrepreneurs have the drive, determination and energy to
overcome hurdles and lauch businesses no matter what.
undertake new ventures: An entrepreneur has the
imagination to spot business opportunities and then launch
new or improved products that fill gaps in the market.
Thinking Creatively
What is creative thinking? Creative
thinking is the process by which
individuals come up with new ideas or
approaches to business which have not
been tried before.
Explain competitive advantage. A competitive adavantage means
being able to offer a product which costumers prefer to rivals because
of better quality, appearance, functions or price.
Are our creative thinking and
competitive advantage linked? Coming
up with fresh ideas to make new or
better products helps make items stand
out in the market place.
Give examples of new ideas. New ideas
can focus on a new product, e.g the
nintendo wii, or a new process that cuts
costs or improves quality, for example,
the dyson vacuum cleaner.
list some creative thinking methods. New ideas can be
generated through lateral thinking, deliberate creativity,
blue sky thinking and asking the right questions.
What is lateral thinking? producing ideas
by looking at a problem from many angles.
Give an example of lateral thnking. Thinking
out side the box can involve breaking down
a simple task life serving coffee in a cafe to
see if a better production process can be
created.
Explain deliberate creativity. Deliberate creativity is the
intentional creation of new ideas by using a range of thinking
techniques e.g blue skies and thinking hats.
what is blue skies thinking? Blue skies thinking is when entrepreneurs try to see a problem with 'fresh eyes'. old ways of
doing things are ignored. instead a brainstorming session is held where everyone is free to make any suggestions and no
idea is rejected out of hand as silly.
What is the six thinking hats? Six thinking hats is a tool to create new ideas and approaches.
How do thinking hats work? a group divides up inot sections each taking on a thinking hat...
White hat thinking - asks what are the facts
Red hat thinking - asks about feelings and emotions
Black hat thinking - asks about problems and challenges with the issue being discussed
Yellow hat thinking - tries to come up with benefits and opportunities.
Green hat thinking - attempts lateral thinking outside the box eg what if?
Blue hat thinking - is thinking about thinking and is done by the group leader.
Asking the right questions
Why are questions important? Asking
questions helps individuals identify issues
and options
list questions
entrepreneurs often
ask. Part of the
process of thinking
creativitely is to ask
the right questions for
example, why ,why
not, how, where, when
, what, what if?
Give examples of why, why not, etc
questions. Hairdresser might ask:
Why do i sell an extensive range of shampoo
Why not open on sunday?
What staff do we need to hire to open for longer hours?
How am i going to recruit new staff?
Where will we locate a new branch?
What if the economy slows down and moves into recession?
Why are 'what if' questions
particularly important? What if
questions help firms look beyond
the obvious and consider best and
worst case situations and how
they might respond.
how do entrepreneurs use the questioning process? The questioning process identifies
issues and options. By asking the right questions the entrepreneur can identify the
costs and benefits of a particular option and come to an informed decision. Do rewards
outweigh risks?
Invention and innovation
How do new business ideas come
about? new ideas can be identified
by individuals who:
use existing products and see how items can be improved
design or produce products and can recognise potential developments
working research and development departments
Distinguish between invention and innovation
invention discovers new products or new ways of making items
Innovation transforms new ideas into products that canbe
sold to customers.
How can an entrepreneur protect a business idea? by using the law
If a firm registers a patent for an invention it can sue anyone who copies their invention
Rivals copying work
without permission
break copyright law
and can be sued
Why is legal protection on inventions important?
Invention and innovation are expensive and risky
activities. Giving inventors legal protection for
original ideas prevents copycats. Legal protection
rewards and so encourages innovation and
invention.
What is a patent?
entrepreneurs
register ownership of
an invention or new
process with the
government and are
given a patent to stop
copying of the idea for
say, the next 20 years.
Explain copyright. Business ideas are
protected by copyrihgt laws. firms can
sue anyone ho copies their idea, eg a
business name, without permission or
payment.
Important enterprise skills
List some of the skills entrepreneurs need for success.
Typically entrepreneurs are:
Imaginative: they can make connections, see new
business opportunities where others do not and spot
gaps in the market
Planners who take time to research customer
requirements, competitors and market trends to better
understand their market place and so minimise the risk
of failure.
have the drive and determination to succeed no matter
how many hours of unpaid preparation are involved or
unforeseen setbacks appear.
What is business planning?
An entrepreneur thinks ahead and works out what to
do in the future to make and sell products that meet
customer needs in a competitive market.